JOHANNESBURG (miningweekly.com) – A new, long-term electricity solution for South Africa’s Hillside Aluminium Smelter, in KwaZulu-Natal, has been advanced, which marks a crucial step toward supporting the future of one of Southern Africa's most important industrial businesses.

Hillside, which supports 3 650 direct and indirect jobs and contributes to an estimated 29 000 jobs across the economy, plays a key role in supplying aluminium to South Africa’s domestic downstream industry.

The solution is targeted to commence in 2031, subject to compliance with all regulatory requirements, South32 and Eskom stated in a joint announcement on Tuesday, April 28.

The Sydney- and Johannesburg-listed South32 and State-owned power utility Eskom have reaffirmed their shared ambition to develop and deliver an enduring energy solution that supports Hillside's competitiveness, contributes to regional economic stability and industrial growth, and aligns with South Africa's broader decarbonisation objectives.

To support this ambition, South32 and Eskom have established a joint working group to explore mechanisms that can bring competitively priced renewable energy into the national grid, backed up by affordable firming capacity, within the existing regulatory framework.

While this work will help support the long-term energy needs of Hillside, the solutions being assessed have the potential to also benefit Eskom and its broader customer base.

"As Hillside celebrates 30 years of operation this year, we are collaborating with the government of South Africa and Eskom to secure its future for decades to come,” South32 COO Noel Pillay stated in a media release to Mining Weekly.

"We have made a solid start. It is important we continue this momentum, working toward a viable, low-carbon energy solution for Hillside from 2031, when the current electricity contract expires," Pillay added.

The value that Eskom places on its longstanding partnership with South32 and the important role that Hillside Aluminium plays in South Africa's industrial economy was highlighted by Eskom Group CE Dan Marokane: “Through this joint process, we are working to develop a long-term energy solution that supports industrial competitiveness while advancing South Africa's transition to a lower-carbon electricity system.

"By exploring innovative mechanisms to integrate renewable energy into the grid with appropriate firming solutions, this collaboration has the potential not only to secure the future of Hillside, but also to contribute to strengthening the resilience and sustainability of the national electricity system for the benefit of all South Africans," he pointed out.

South32 stated that its purpose is to make a difference by developing natural resources, improving people's lives now and for generations to come.

“We are trusted by our owners and partners to realise the potential of their resources. We produce minerals and metals critical to the world's energy transition from operations across the Americas, Australia and Southern Africa."

South32, headed by CEO Graham Kerr, emphasised its aspiration to build meaningful relationships with its partners and communities. Kerr is leading a transition to incoming CEO Matthew Daley, who joined the company in early 2026 to take over leadership.

Wholly owned by the South African government, Eskom is committed to a responsible transition to a lower-carbon future.